Mumbai, February 7, 2025:
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has cut the repo rate by 25 basis points (bps) to 6.25%, marking the first reduction in nearly five years. The decision follows recent tax relief measures in the Union Budget 2025 and aims to support economic growth amid easing inflation and slowing GDP expansion.
This rate cut is expected to benefit borrowers by lowering EMIs on home, auto, and business loans. Economists had widely predicted this move, citing declining core inflation and the need for monetary easing. The RBI has hinted at potential further rate cuts, depending on future economic conditions.
